AXA Units To Pay $242M To Settle Coding Error Suit

Law360, New York (February 3, 2011, 7:30 PM EST) -- Three units of AXA Group said Thursday they will pay $242 million to settle U.S. Securities and Exchange Commission allegations that an error in the company's quantitative investment computer models caused millions of dollars in investor losses.

AXA Rosenberg Group LLC, AXA Rosenberg Investment Management LLC and Barr Rosenberg Research Center LLC agreed to reimburse investors $217 million for their losses, pay a $25 million penalty and submit to ongoing government oversight without admitting wrongdoing, according to an SEC administrative order.

"We deeply regret that the...
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